Hi

I'm basically from Nagpur and currently working in Bangalore. I thought of buying a 2/3bhk appartment in pune due to little less close to Nagpur as compraed to B'lore.

Just couple of weeks ago I visited pune to check out the real estate market, to my surprise I was totally taken aghast by looking the prices (4000-4700 sq.ft) and location(Baner,Balewadi(close to highway)). 2bhk almost in range between 45-55lacs and that is also for a location where you don't have proper market near by at walkble distance, quite difficult to find commute(autos,public transport),parks, hospitals, schools.

For me it was very hard to digest those prices for that locations. so I came back to Bangalore and instantly booked an 2bhk appt.(1200 sq.ft) 44lacs (includes everything with all amenities) and 1km from Indira nagar. You can compare Indira nagar as to Koregaon Park, Kalyaninagar, Deccan Gymkhana areas.

Now tell me, does it make a sense to buy 2bhk appt 45-50lacs and totally outskirt of pune city. I think I had taken good decision to buy a flat in B'lore and I'm happy with it.

Pune's real estate market rates are too hyped compared to their actual worth.
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  • Originally Posted by Jai_hoo
    Hi

    I'm basically from Nagpur and currently working in Bangalore. I thought of buying a 2/3bhk appartment in pune due to little less close to Nagpur as compraed to B'lore.

    Just couple of weeks ago I visited pune to check out the real estate market, to my surprise I was totally taken aghast by looking the prices (4000-4700 sq.ft) and location(Baner,Balewadi(close to highway)). 2bhk almost in range between 45-55lacs and that is also for a location where you don't have proper market near by at walkble distance, quite difficult to find commute(autos,public transport),parks, hospitals, schools.

    For me it was very hard to digest those prices for that locations. so I came back to Bangalore and instantly booked an 2bhk appt.(1200 sq.ft) 44lacs (includes everything with all amenities) and 1km from Indira nagar. You can compare Indira nagar as to Koregaon Park, Kalyaninagar, Deccan Gymkhana areas.

    Now tell me, does it make a sense to buy 2bhk appt 45-50lacs and totally outskirt of pune city. I think I had taken good decision to buy a flat in B'lore and I'm happy with it.

    Pune's real estate market rates are too hyped compared to their actual worth.


    If you are happy with buying then its right decision.
    The problem is when people overstretch to buy. They worry about EMI and appreciation. Its greed and fear.
    Strangely in Pune people who earn more like ITGs are more fearful :D
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  • I think there is serious action/need required to bring down all these greedy builders to their knees. otherwise buying a 1st dream home for common people like us will always be a Great Indian Dream.:-(

    one more thing that I missed to add, I was closely following this forum from last 3-4 months about pune's project and locations. I thank you all for their posts and specially realacres for his critics and advices.:)
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  • I think RE prices in Pune are ridiculous. What no one seems to talk about is the quality of construction. Apartments that leak from Day 1 and horror stories about bathrooms and tiling.
    It is starting to look and feel like Zimbabwe. Tulip Mania anyone?
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  • Originally Posted by Jai_hoo
    Hi

    I'm basically from Nagpur and currently working in Bangalore. I thought of buying a 2/3bhk appartment in pune due to little less close to Nagpur as compraed to B'lore.

    Just couple of weeks ago I visited pune to check out the real estate market, to my surprise I was totally taken aghast by looking the prices (4000-4700 sq.ft) and location(Baner,Balewadi(close to highway)). 2bhk almost in range between 45-55lacs and that is also for a location where you don't have proper market near by at walkble distance, quite difficult to find commute(autos,public transport),parks, hospitals, schools.

    For me it was very hard to digest those prices for that locations. so I came back to Bangalore and instantly booked an 2bhk appt.(1200 sq.ft) 44lacs (includes everything with all amenities) and 1km from Indira nagar. You can compare Indira nagar as to Koregaon Park, Kalyaninagar, Deccan Gymkhana areas.

    Now tell me, does it make a sense to buy 2bhk appt 45-50lacs and totally outskirt of pune city. I think I had taken good decision to buy a flat in B'lore and I'm happy with it.

    Pune's real estate market rates are too hyped compared to their actual worth.

    +1. Pune RE is a hyped one. High prices, pathetic constro & junk location. One of my friend too booked in Bangalore at Ajmera Infinity for 2250/sq ft last year for 19th floor, with 20% loading. The possession was given 3 months in advance than promised.

    Man, Bangalore is indeed more VFM than Pune. Add to it BDA & new metro to be opened soon + international airport, makes sense to buy in Bangalore & rent in Pune!!
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  • Originally Posted by Jai_hoo

    For me it was very hard to digest those prices for that locations. so I came back to Bangalore and instantly booked an 2bhk appt.(1200 sq.ft) 44lacs (includes everything with all amenities) and 1km from Indira nagar. You can compare Indira nagar as to Koregaon Park, Kalyaninagar, Deccan Gymkhana areas.


    And what rent would this 2BHK fetch you in Bangalore?
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  • We purchased a flat in Chinchwad 15 yrs ago for 4 lacs. I remember my dad telling me, its unbelievable how expensive the real estate prices are (Rs 350/ sq feet). The present rate is Rs 2200/ sq feet.
    I purchased a flat in Balewadi in 2009 and by 2010 the price of the flat had appreciated more than 20%.
    I cannot justify the exuberant rise in the price...no one can..except the builders, however every time some one talks about the right time ..I remember my Dad says "Rs 350/sq feet...is unbelievable"
    In a country of 1.2 Billion people I doubt that the prices "Will be down by this Diwali"
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  • Originally Posted by Jai_hoo
    Hi

    I'm basically from Nagpur and currently working in Bangalore. I thought of buying a 2/3bhk appartment in pune due to little less close to Nagpur as compraed to B'lore.

    Just couple of weeks ago I visited pune to check out the real estate market, to my surprise I was totally taken aghast by looking the prices (4000-4700 sq.ft) and location(Baner,Balewadi(close to highway)). 2bhk almost in range between 45-55lacs and that is also for a location where you don't have proper market near by at walkble distance, quite difficult to find commute(autos,public transport),parks, hospitals, schools.

    For me it was very hard to digest those prices for that locations. so I came back to Bangalore and instantly booked an 2bhk appt.(1200 sq.ft) 44lacs (includes everything with all amenities) and 1km from Indira nagar. You can compare Indira nagar as to Koregaon Park, Kalyaninagar, Deccan Gymkhana areas.

    Now tell me, does it make a sense to buy 2bhk appt 45-50lacs and totally outskirt of pune city. I think I had taken good decision to buy a flat in B'lore and I'm happy with it.

    Pune's real estate market rates are too hyped compared to their actual worth.


    I tend to disagree a bit on this. Indira nagar's rate is 7k to 12k psf, if you can compare it with aundh you can also get similar rates in pimple gurav and khadki area.
    JP nagar etc has still rates greater than 8k psf which goes till 14k psf.

    Bangalore has greater area while this is not the case in pune, it is very small place (not that we are not considering exterioir areas they come in PCMC). So supply demand ratio applies.

    No doubt infra is not there, but then after 3-4 yrs it will comeup.
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  • Pune RE is rising at unrealistic rate. People are buying property like bunch of mad cows eating all grass ahead feeling there will be nothing left tomorrow.

    My few observations:

    1) Prices are artificially jacked up by cartel of builders. There is no logic for the price. ABC builder is advertising at 4k so XYZ builder quotes 4k.

    2) We have seen rise in rates for last 2 years. We all are part of rat race. When we hear how our friend or relative got 20% appreciation in 1 year, we feel left behind in the race.

    3) Due to ban on entry load the MF agents have stopped selling MF and this has lead to low liquidity in stock market. This has also contributed to fall in market. The MF money is now flowing into RE as investment avenue.

    4) Builders have lots of black money and support from politicos so they don’t worry about book losses.

    5) Builders are not ready to sell lower, Instead they will advertise more and trasfer the cost to new buyer by highe rate.

    6) Banks and NBFC’s are giving loans to non-eligible buyers to increase their fee based income.

    And lastly we have blind hopes that things will improve in near future. So just invest now and let the God do rest for us. (While we pay high EMI and maintenance)

    PS: When my relative ask me why am not buying flat, I just smile and say “Am RE idiot”
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  • Originally Posted by Vasantdeshmukh
    We purchased a flat in Chinchwad 15 yrs ago for 4 lacs. I remember my dad telling me, its unbelievable how expensive the real estate prices are (Rs 350/ sq feet). The present rate is Rs 2200/ sq feet.
    I purchased a flat in Balewadi in 2009 and by 2010 the price of the flat had appreciated more than 20%.
    I cannot justify the exuberant rise in the price...no one can..except the builders, however every time some one talks about the right time ..I remember my Dad says "Rs 350/sq feet...is unbelievable"
    In a country of 1.2 Billion people I doubt that the prices "Will be down by this Diwali"


    350 to 2200 in 15 yr comes to be 13% CAGR which is digestible, issue is that builders are increasing rates at rate of 20-30% annually and still people are ready to pay whatever they demand. Worst thing is that they are ready to compromise on other important aspects like area, basic infrastructure and lifestyle.
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  • Originally Posted by RAJESHP
    And what rent would this 2BHK fetch you in Bangalore?

    It will fetch me minimum Rs.16,000-20,000
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  • the area & infra is nt issue these days i dont understand why r this a key issue ... most of the people have their own cars so they dont need PMT or bus ... they like to hangout to big-bazar every sat or sunday's with family in car so shopping is nt issue ... most people take thr own vehicle or may be using company bus for transport, so wht is this infra means only hospital is the issue ( that too if ur time is over u have to go :D), safety is now a days big concern in city itself so not an issue of that...

    so the outcome is pune people dont need infra .. they just need flats ....
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  • Problem is where we are exactly heading. Just look at some recent quotes from buiders.

    1) Paranjpe's Bule Ridge in Hijewadi - 1BHK compact flats 25 lakhs
    2) Nanded City -1BHK with Sevice tax + VAT + Registration costs almost 25 lakhs. (Carpet around 500+ sq feet)
    3) In Baner/ Pashan / Aundh areas, even 1BHKS have crossed 30 lakhs and quoting prices are as high as 35 lakhs.

    If we comapre prices in other Metros like Bangalore / Chennai, their cost seems relatively low, alhtough they are way out from the main city due to:
    1) Good Infra
    2) Good Public transport
    3) Good /supportive development autorities

    We are lacking on all three fronts, but still we are in premium as compared to these metro real estate rates. We do not have premium developers like Unitech, DLF, Hiranandani and other national players.(I do agree theat they create their new issues, but still they are not present in Pune)

    With OP Bhat's recent statement that Interest rates have peaked out and they will start declining in coming months (not immediately), people will tend to buy in decreasing interest rate scenario.

    Can't imagine how much Pune real estate prices will be stretched further !!!
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  • Originally Posted by saggii
    I tend to disagree a bit on this. Indira nagar's rate is 7k to 12k psf, if you can compare it with aundh you can also get similar rates in pimple gurav and khadki area.
    JP nagar etc has still rates greater than 8k psf which goes till 14k psf.

    Bangalore has greater area while this is not the case in pune, it is very small place (not that we are not considering exterioir areas they come in PCMC). So supply demand ratio applies.

    No doubt infra is not there, but then after 3-4 yrs it will comeup.


    my dear friend, which jp nagar phase you are refering.. no doubt jp nagar 1st phase is on par with indira nagar but indira nagar has more advantages compared to jp nagar. From Indira nagar Bagmane tech park is in 1km, EGL tech park 3km, Electronic city 15km, ITPL 6km, cant. station 6km, 2 metro stations in indira nagar (on CMH road, OMR road), 2 big hospital (CMH and Manipal), 2-3 good schools(Nationa Public School,New Horizon Public school), thippasandra market for everything u need, and top retail showroom & outlets on100 ft. road. Wat else u need ?
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  • Originally Posted by sandyhey
    the area & infra is nt issue these days i dont understand why r this a key issue ... most of the people have their own cars so they dont need PMT or bus ... they like to hangout to big-bazar every sat or sunday's with family in car so shopping is nt issue ... most people take thr own vehicle or may be using company bus for transport, so wht is this infra means only hospital is the issue ( that too if ur time is over u have to go :D), safety is now a days big concern in city itself so not an issue of that...

    so the outcome is pune people dont need infra .. they just need flats ....


    my dear friend, I also used to think like that before visiting pune but after that everything changed. Not everyone owns a car and if you don't have ur own bike or car then its really tough to commute in pune. just give a try and then tell me.
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  • 1993 to 2007 was a golden period for india. liberalization of economy, offshoring etc hugely contributed to large money in hands of people. this has reflected in realty.

    Dont expect such golden period again for a long time to come.

    in 1995 a govt employee had salary around 5 K. today salary has increased by 4 times but property rates have increased by 8 to 10 times which is not at all justified.

    Originally Posted by Vasantdeshmukh
    We purchased a flat in Chinchwad 15 yrs ago for 4 lacs. I remember my dad telling me, its unbelievable how expensive the real estate prices are (Rs 350/ sq feet). The present rate is Rs 2200/ sq feet.
    I purchased a flat in Balewadi in 2009 and by 2010 the price of the flat had appreciated more than 20%.
    I cannot justify the exuberant rise in the price...no one can..except the builders, however every time some one talks about the right time ..I remember my Dad says "Rs 350/sq feet...is unbelievable"
    In a country of 1.2 Billion people I doubt that the prices "Will be down by this Diwali"
    CommentQuote